1. Field of the Invention
The present invention relates generally to computer-implemented methods and systems for performing analysis of information contained in a database according to a particular set of preselected parameters and obtaining a result based on such analysis. More particularly, the present invention relates to a computer-implemented method and system for creating a portfolio of stock equities by processing information contained in a database using a set of strategic factors so as to obtain a portfolio of strategically selected stocks reflecting a specific investment strategy.
2. Background and Conventional Art
In the securities field, financial analysts perform the task of following the operations and condition of companies whose common stock is sold to the public. Typically, in order to gain expertise, such analysts focus on particular economic sectors. Examples of such economic sectors are the entertainment sector, the personal services sector, the telecommunications sector, the automobile sector, and the information services sector.
An investor wishing to invest in stocks may purchase the stock of individual companies, or may purchase shares in mutual funds or units in an equity trust. While the potentially large gains from ownership of the stock of any one individual company are usually accompanied by an equally large risk of loss, investment in mutual funds or equity trusts seeks to reduce risk while maintaining a relatively high potential for gain.
Conventionally, the composition of an equity trust or mutual fund portfolio is a result of continuous analysis by many securities analysts employed by the mutual fund or sponsor of the equity trust. While the securities recommended for investment may be chosen based on an articulated objective, it is to be expected that a significant amount of subjectivity and divergence of opinion may arise in arriving at recommended securities for inclusion in the equity trust or mutual fund. Additionally, arriving at a consensus requires many hundreds of hours of human effort in collecting, reviewing, studying and analyzing information.
There thus exists a need in the art for a computer-implemented method and system for creating a portfolio of equities based on a specific strategy consisting of specifically defined parameters, and which can be implemented automatically and efficiently by analyzing information contained in a database in accordance with the predefined parameters to obtain an investment portfolio containing stocks satisfying the investment objective by meeting the requirements of the selected parameters.